Circles.Life has been fined $413,160 for breaching telco ID rules, exposing customers to identity theft and financial loss.
An ACMA investigation found Circles.Life contravened the rules 26 times between January and February 2024 when it transferred mobile phone numbers to its service without first adequately verifying the identity of the person requesting the transfer.
Scammers had stolen these numbers and used them to access some people’s bank accounts. As a result, affected consumers reported losses totalling at least $45,000.
Authority Member Samantha Yorke said this was deeply concerning given the real financial harm for the consumers involved.
“This kind of fraud can also lead to ongoing emotional impacts and stress as people have to recover their digital identities,” Yorke said.
This is the second time in three years Circles.Life has breached rules designed to protect consumers from mobile number fraud. In August 2022 Circles.Life paid a $199,800 penalty after the ACMA found it contravened the same rules.
“It is simply unacceptable that Circles.Life failed a second time to follow the identity checking rules that prevent criminals from committing mobile number fraud,” said Yorke.
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The Telecommunications (Mobile Number Pre-Porting Additional Identity Verification) Industry Standard 2020 sets out rules that require telcos to verify a customer’s identity before accepting transfers of mobile numbers from other telcos.
The ACMA investigation found that the contraventions were due to the actions of customer service agents engaged through a third-party company not following identity verification procedures.
“Regardless of these arrangements, Circles.Life was ultimately responsible for complying with the requirements. Telcos should be aware they cannot outsource their legal obligations to protect Australian consumers,” Yorke said.
The $413,160 penalty paid by Circles.Life is the largest the ACMA has given to date for contraventions of these rules. The ACMA has accepted a court-enforceable undertaking from Circles.Life committing the company to a review of its compliance with the identity verification rules. Circles.Life also voluntarily committed to contact all victims with an offer of compensation.
Circles.Life has stated that it will cease its operations in Australia after it has transferred all customers to Amaysim, however the enforceable undertaking will remain in place in the event that they re-engage with Australian consumers.
Adrianne Saplagio is a Content Producer at Comms Room, where she combines her passion for storytelling with her expertise in multimedia content creation. With a keen eye for detail and a knack for engaging audiences, Adrianne has been instrumental in crafting compelling narratives that resonate across various digital platforms.
